Cummins India stock: Growth recovery likely to aid revenues in FY19

Growing demand for cleaner fuel, expanding network important earnings drivers

The Cummins India stock recorded 12 per cent fall in the last month on margin pressures and cut in revenue growth guidance for 2017-18. The cut in revenue growth guidance to 0-5 per cent from 5-10 per cent earlier was brought on by a 15 per cent decline in the high horsepower segment in the domestic market and weak demand conditions in the key export markets of West Asia and Africa.

Even though, 2017-18 revenue growth is likely to be flattish, given improvements in some segments, the company could see a 5-10 per cent growth in domestic business in 2018-19.